Dealmaking has continued to slow in 2023 and April was no different. Last month saw the fewest deals, 53, of any single month since June 2020, according to data provided by Refinitiv.
Deals across most sectors were down year-over-year. Only the industrials sector had similar value and deal totals as in 2022.
Notable deals in the industrials space included GI Partners’ $999 million deal for Atlas Technical Consultants, an Austin, Texas-based provider of infrastructure and environmental services. Year to date, the industrials sector has seen 26 deals valued at $9 billion. This represents a 9 percent decrease in value vs. 2022.
The tech sector has seen just 55 deals in 2023 for a value of $12.7 billion, a whopping two-thirds decrease in value compared to 2022. Notable tech deals in the space for the month of April included the consortium of Tiger Global Management, Sequoia Capital, AH Capital Management, Thrive Capital Management, and K2 Global Founders Fund Management’s acquiring OpenAI LLC, a U.S.-based artificial intelligence platform, for $300 million.
The decline in private equity deals has been more pronounced so far this year, due in large part to tightening credit markets. Strategic deals so far this year represent nearly 80 percent of total dealflow, while private equity deals have fallen from 34 percent of deals in 2022 to 22 percent so far this year.
League table data showed Goldman Sachs, Piper Sandler & Co. and JP Morgan again in the top three spots, accounting for a combined market share of 25.4 percent. Goldman has advised on a total of 18 deals so far in 2023, including three deals in the month of April, for a total of $6.9 billion. Goldman and JP Morgan each advised in the real estate sale by REIT Veris Residential of three of its Jersey City, N.J. Harborside office buildings in April.
CIBC World Markets has made a notable jump so far this year, advising on seven deals for a total of $3.3 billion. This puts the bank in fifth place year-to-date vs. being in 38th place at this point last year.
Check out the full breakdown of April’s biggest middle-market deals here.
–Cole Lipsky
